Hi-Crush Partners (HCLP), which was the top MLP gainer in the week ending July 27 with massive week-over-week gains of 40.6%, saw some profit-booking last week following its second-quarter earnings announcement and management’s plans to change its corporate structure. To learn more, read Hi-Crush Partners’ Sand Volumes Rose 16% in Q2 2018.
The massive rally ahead of the second-quarter earnings was driven by a few positive announcements including the acquisition of FB industries, a new agreement with an exploration and production customer, and a massive 233% distribution increase. Emerge Energy Services (EMES), was the second-weakest MLP last week. Emerge Energy Services fell 10.4% last week.
American Midstream Partners
American Midstream Partners (AMID), a midstream MLP involved in natural gas gathering, processing, and compression, was the third-weakest MLP in the week ending August 3. The partnership has been among the weakest MLPs after it announced a capital allocation strategy, which includes the sale of non-core assets and a distribution cut. The partnership declared a distribution of $0.10131 per unit for the second quarter. The distribution represents a 24.6% decrease compared to the distribution of $0.4125 per unit the previous quarter. American Midstream Partners has fallen 44.6% YTD (year-to-date).
CVR Refining (CVRR), a downstream MLP mainly involved in crude oil refining and refined products marketing, was the fourth-weakest MLP last week. CVR Refining ended the week 9.7% lower. CVR Refining saw a sharp decline following its earnings announcement last week. The decline could be attributed to the partnership’s lower-than-expected second-quarter earnings. CVR Refining posted an adjusted EBITDA of $147 million for the second quarter—compared to analysts’ estimates of $161.3 million. However, the second-quarter EBITDA represents 241.1% year-over-year growth. Despite last week’s decline, CVR Refining has risen 29.3% YTD.
Other low MLP performers
CSI Compressco (CCLP), Valero Energy Partners (VLP), Shell Midstream Partners (SHLX), AmeriGas Partners (APU), Foresight Energy (FELP), and Suburban Propane Partners (SPH) were among the top ten lowest-performing MLP stocks last week.
Next, we’ll discuss MLPs’ rating updates last week.